LRS Declaration (Form A2: Liberalised Remittance Scheme)
Prepare the declaration a resident individual gives the bank when sending money abroad under the Liberalised Remittance Scheme.
Law version: TCS rates: FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
Under the Liberalised Remittance Scheme, a resident individual can remit up to USD 2,50,000 per financial year for permitted current and capital account purposes, such as education, travel, medical treatment, maintenance of relatives, gifts and investments. The bank asks for an application in Form A2 with a declaration of the purpose and of remittances already made in the year. TCS is collected on remittances above the threshold, worked out on the remittance date: under Section 206C(1G) up to 31 March 2026 and Section 394 of the Income-tax Act, 2025 from 1 April 2026.
When it is used
- Paying overseas university fees.
- Sending money to relatives abroad.
- Investing in foreign shares or property under LRS.
What the template covers
- Remittance date, name, PAN and address
- Purpose of remittance
- Beneficiary name and country
- Amount in USD and INR
- Cumulative remittances in the year, across all banks
- AD bank
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Remittance
Remittance Date; Purpose of Remittance; Beneficiary Name; Beneficiary Country; Amount in USD; INR Equivalent (₹); Cumulative Remittance in FY (USD, incl this)
Remitter
Full Name; PAN; Address; Aadhaar Last 4 Digits
TCS
Already remitted this financial year, all banks (₹)
Bank
AD Bank
Stamp duty, registration and filing
From 1 April 2026, TCS is 2% above ₹10 lakh a year for education or medical treatment (nil where education is financed by a loan from a financial institution), 2% on overseas tour packages, and 20% above ₹10 lakh for other purposes; the ₹10 lakh threshold is per PAN across all banks. TCS is credited against the remitter's tax. Check the current rates on incometax.gov.in and the LRS conditions on rbi.org.in.
TCS is worked out on the remittance date. From 1 April 2026: education or medical treatment 2% above ₹10 lakh a year (5% up to 31 March 2026), nil for education financed by a loan from a financial institution, overseas tour packages 2% (5% up to ₹10 lakh and 20% above, up to 31 March 2026), and 20% above ₹10 lakh for other purposes. The ₹10 lakh threshold is per PAN across all banks in the financial year.
Generate the LRS Declaration (Form A2 — Liberalised Remittance Scheme)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. the MCA e-form filing)? Contact SKAG and Associates
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Frequently asked questions
What is the LRS limit?
USD 2,50,000 per financial year per resident individual.
Is TCS a tax cost?
TCS is adjustable against your income-tax liability or refundable through the return.
Can LRS be used to buy property abroad?
Yes, it is a permitted capital account purpose, within the limit.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.